Forex Brokers in Australia
Richard Montana | November 11, 2022
Australia is a popular destination for forex brokers with many of the top brokers being registered there. The Australian Securities and Investments Commission (ASIC) is Australia’s financial markets conduct regulator and is considered top tier which means that traders trust Australian forex brokers. ASIC is responsible for promoting a fair, transparent and efficient financial system for all.
Best forex brokers in Australia
We have conducted many hours of thorough research and analysis into the quality of service provided by hundreds of Australian forex brokers. This enables us to collate what we consider to be amongst the most important things to look for in a broker and allocate them an unbiased rating based on our findings. That being said, you can see a selection of our best forex brokers in Australia below.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
How to choose an Australian forex broker?
The most important factor for us to consider when choosing our best Australian forex brokers is that they are regulated by ASIC to provide forex trading products and services. Once this has been confirmed by checking the broker’s license on the ASIC register, we then look at other important features including platforms, currency pairs, other financial instruments, spreads, commission, tools, education, account, funding and customer support.
Forex Regulation in Australia
Any forex broker that is offering services to traders in Australia should be authorised and regulated. Using an ASIC regulated forex broker can give investors some protection that unregulated brokers cannot. I would always prefer to use a regulated broker as it gives me the peace of mind that they will be operating in an open and honest manner at all times. This is because they need to follow rules and procedures implemented by the respective regulators.
It is worth mentioning that there are some non-Australian forex brokers that still solicit clients located within Australia. There are also Australian brokers who offer online forex trading services to clients located in some countries outside of the Australia. In this instance, it would be a considered a sensible idea to ensure that the broker in question has the relevant regulation within the jurisdiction that they operate from.
Australian Securities and Investments Commission (ASIC)
To make it into our list of the best forex brokers in Australia, each broker has to be authorised and regulated by the Australian Securities and Investments Commission (ASIC). Established in 1998, ASIC’s role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors. ASIC reports to the treasurer and administers legislation for the Insurance Act of 1984, the Corporations Act of 2001, and the National Consumer Credit Protection Act of 2009.
If a broker has been licensed by ASIC, they should be provided with a registration number as proof that they are registered. This number is usually located on the brokers website, near the footer where they state who they are regulated by. You should check on the ASIC website to validate the current status of the broker registration to ensure that it is valid and up to date. It has been known for some scam brokers to fake regulation, some even going as far to clone another brokers website. When you are looking up the registration number, you should find details of the brokerage firm including their website, contact details and if they have any cases brought against them.
The brokers should have a variety of different forex trading platforms for multiple devices including desktop, web and mobile forex trading apps. The trading platforms should be user friendly, with plenty of trading tools and advanced functionality for all types of forex strategies. I like it when a platform is easy to navigate and can be fully customised to be as simplistic or complex as you need it to be. You will find that there are lots of MetaTrader brokers which is one of the most user-friendly platforms that gives convenient access to the forex market for both manual and automated trading strategies.
The brokers should provide Australian forex traders and investors with a wide range of currency pairs including major, minor and exotic crosses. You should also look for any other trading instruments across other asset classes including Commodities, Cryptocurrency, Stocks, Indices, Options, ETFs, CFDs and Futures. The more choice that the broker has, the easier it would be to expand your portfolio in the future, should you wish to do so.
When you place a trade position with a forex broker, you will usually need to pay the spread which is the difference between the bid and ask prices at the time of executing your order. In general, the lower the spreads, the cheaper the trading costs can be and the better the prices you may have your trade executed at. Although, this can also be dependent on other factors such as the brokers liquidity, slippage and execution model.
Many Australian forex brokers will charge a small commission fee for each trade that you place with them. The lower the commission fee per trade, the lower your overall trading costs can be in the long term. Some trading strategies actually depend on low commissions. Thus, the best forex brokers in Australia should have the most competitive commissions.
In addition to the spreads and commissions that brokers may charge, there can be additional fees. These include overnight swap fees, funding fees, platform fees, trading tool fees, educational resource fees, etc. Any other fees charged by the broker should be competitive and transparent to the trader. If you are looking to save as much as possible on your trading costs, you can take a look at our best discount brokers.
The execution speed can determine the price your order will be executed at. Instant execution should mean that the order is placed as close to your desired price as possible. The best Australian forex brokers should have rapid execution speeds with minimal slippage so that traders get the best available prices more often than not. Some forex trading strategies such as scalping are dependent on reliable execution speeds.
The best brokers forex in Australia should have top liquidity providers (LPs) with deep liquidity pools so that they can offer competitive bid/ask prices along with reliable trade execution speeds. I find that ECN forex brokers with a dealing desk tend to have the tightest spreads and superior execution speeds.
Forex Trading Tools
Whilst the trading platforms offered by brokers will usually have more than enough trading tools for the average trader, there are some brokers who offer additional trading tools such as economic calendars, trading calculators, market analysis, trading signals and more. The best forex brokers will usually offer some additional trading tools to support traders with their daily trading activities.
Educational resources can help traders to improve their trading skills and knowledge. They also encourage informed trading. The best brokers will usually offer forex traders a range of free educational materials such as tutorial videos, trading guides, eBooks, trading glossary, FAQs, webinars and seminars. If you are new to trading and need as much guidance as possible, you might want to explore our best brokers for beginners.
Forex Account Types
Australian brokers can have a variety of different account types that are designed to cater to the differing needs of clients. The forex accounts can vary according to the minimum deposit required, leverage offered, execution type, spreads, commissions, instruments, additional services and more.
The best Australian forex brokers should have a selection of account types for traders with different experience levels and forex strategies. Demo forex accounts can be useful to practice trading online with virtual funds whilst Islamic accounts that comply with Sharia law support Muslim traders.
Account Funding Options
In order to trade online, you will need to be able to deposit and withdraw funds to and from your forex account. Brokers can offer a range of different account deposit and withdrawal methods. This will often include bank transfers, credit/debit card and online payment processors such as Skrill, Neteller and PayPal. The best forex brokers in Australia should have a good variety of convenient funding options. It is worth considering the time taken and any fees involved for processing funds.
Most Australian forex brokers can be reached via telephone, email and live chat. It is worth ensuring that the broker can be reached in a way that is convenient for your needs. The brokers customer support team should be prompt, polite and efficient in their responses to all clients general and technical questions. You may wish to consider if there is any different between your time zone and the brokers support hours, as this could have an impact on response times.
Conclusion: should I trade with an Australian forex broker?
Overall, you are not short of choice when it comes to choosing a forex broker in Australia. In fact, you don’t even need to live in Australia to open a forex account with a broker there. Some Australian brokers will even have offshore branches which are not ASIC regulated but might be able to provide other products and services.
The broker you do decide to use should have all of the features that you are looking for without compromise. You want to be able to focus on your forex trading with all the tools you need at your disposal and without any unnecessary distractions.
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